Commercial Real Estate in Russia – Attractive Option for Companies

Russian commercial real estate investments offer both regular income and capital appreciation potential. Purchasing commercial properties in may help secure both income stability and capital appreciation potential.

2021 saw a record number of retail centers open up due to deferred demand caused by the COVID-19 coronavirus pandemic.

Office space

Office space in Moscow is an attractive option for companies looking to expand their operations. Home to many large international corporations such as natural gas giant Gazprom and boasting an experienced workforce, Moscow boasts high costs of living as well as rising rents from an inadequate office building supply; corruption and crime remain significant challenges facing its business climate.

Before signing any rental agreement in Russia, it is wise to research the costs associated with office space rental agreements. There are various options for tenants looking for ways to save on rent; whether your needs require space for several months or years – there will always be something available that fits within budget and meets them.

Flex workspace can be an excellent solution for project teams, remote departments or startups requiring temporary offices. Not only is it much less costly than leasing an entire business center or corporate building but its flexibility makes them the perfect option for businesses that must remain close to both clients and suppliers.

Russian commercial real estate market has experienced steady expansion over recent years, drawing both local and foreign investors alike. A variety of real estate companies have emerged within Russia to provide services like property valuation, market research, lease negotiation and property management – offering invaluable guidance to anyone seeking to purchase or sell commercial properties there. These organizations provide valuable advice when purchasing or selling property there.

Russian commercial real estate remains relatively underdeveloped, but various factors are driving its development. Russia does not suffer the same economic strains that other European nations experience from China or India and has strong position in global energy market. Furthermore, Russia is an attractive trading partner to European Union members which makes Russia attractive to investors who wish to purchase office space there. These factors all combine to drive Russia’s office space market forward.

Retail space

Retail space is one of the most sought-after types of commercial real estate in Russia, both for leasing or purchasing as storefront space and to promote brands. Furthermore, warehouse storage requirements continue to grow thanks to ecommerce businesses that rely heavily on logistics centers; further increasing this type of space’s popularity into 2022.

Construction of shopping malls in Russia reached its highest value ever during the first half of this year, yet overall market development remained stagnant due to economic crisis and international sanctions. Furthermore, investment in retail space remained much lower compared with other asset classes.

Many companies opt to lease or purchase retail space instead of building it themselves in order to save on costs associated with design, construction and maintenance as well as long-term lease agreements. Furthermore, leasing saves companies money on electricity and water bills as well as taking advantage of tax breaks available to commercial property development projects.

Investors are becoming increasingly focused on new formats of retail space. In Moscow, most retail deliveries this year will include mixed use and specialized formats – for instance the forthcoming Ostrov Mechty amusement park is one such new development – while many shopping centers – like Prague in Russia – may soon be offered for sale.

Some retailers are making moves into regional cities. Leroy Merlin plans on opening stores in smaller towns so as to reach a wider range of consumers and increase market share. This strategy could prove fruitful.

Before leasing out commercial space, registration must first take place. This process usually takes several weeks; during which time changes to your contract may be possible. If you require assistance during registration, contact an attorney immediately for guidance.

Industrial space

Industrial space in Russia consists of land allotments designated specifically for use as industrial and warehouse facilities. Such plots can be acquired from state, local government or private owners and prices depend on location and business type; ideal industrial-purpose plots should be located close to residential developments and population centers so workers and engineers can reach the plant within one hour from home; additionally they should be greenfield plots without preexisting infrastructure (greenfield).

Over the past 15 years, Russia’s government has implemented various economic cluster policies in order to attract investors and foster industrial zones. Yet implementation remains challenging for most regions due to insufficient funding or an industry-focused development approach; additionaly many zones suffer from corruption or bureaucracy that impede business expansion.

Special economic zones (SEZs) are designed to advance economic development and foster foreign investment. Their SEZ model offers prospective investors many benefits, such as free trade conditions and a relaxed regulatory environment; plus they may even offer tax incentives and advantages for doing business within them.

SEZs offer businesses many benefits to achieve their export goals and reduce costs by giving them an international competitive advantage, making this an essential consideration when exporting goods and services. Furthermore, SEZs provide access to an expansive pool of human resources and expertise.

Industrial parks are similar to SEZs but generally cover larger territories and can accommodate a wider array of activities. Their primary goal is attracting foreign investments while creating opportunities for collaboration between foreign firms and local firms, in addition to offering lower taxes and simpler procedures for obtaining permits.

SEZs and industrial parks can maximize their potential by offering superior infrastructure. This can help businesses reduce energy costs, boost production capacity and enhance employee efficiency – while at the same time offering strategic positioning to lower shipping and delivery expenses.

Storage facilities

Storage facilities provide the ideal environment for safely storing less-often used items and personal possessions. You can rent units on a monthly basis and move in and out whenever it suits you – the unit sizes range to ensure you find one that perfectly suits your belongings – or switch between larger and smaller units as your needs evolve.

Moscow has witnessed stunning commercial real estate growth over the last decade, as retail and warehouse-type property have increased in value by over five times compared to their levels in 2002. This development of commercial real estate reflects increasing consumer demand as well as investors’ trust in Moscow as an investment destination.

However, due to economic uncertainties, the market is currently experiencing some adjustments. Prices are falling and sales of real estate in megacities have become less frequent. Investors still seek attractive investment opportunities in this sector.

Russian commercial properties are becoming more sought-after, with new players entering the market and rising competition in self-storage facilities. According to research by Safe Box, customers often come from up to 12.5 miles away just for them, showing just how necessary these facilities are in Russia.

The Russian Defense Ministry plans to reform current bases used for storing material resources of the Armed Forces, streamlining logistics operations and cutting maintenance costs. There are currently 330 storage bases and warehouses used by military equipment. In addition, 24 large transshipment and logistics complexes exist. Furthermore, their goal is to establish over 260 warehouses by 2020.

Russia is working towards improving agricultural infrastructure and increasing the efficiency of its grain transportation system, with plans underway to promote development of their wheat industry by investing in high-tech farming equipment; also included are plans for grain storage facilities as well as other infrastructure enhancements.

At this point, it’s essential to keep in mind that foreign investors can legally purchase real estate in most cities and towns; however, foreign citizens cannot buy agricultural land, forest fund property, territory belonging to nature reserves and defense facilities, or acquire properties within closed areas without first receiving a special permit from authorities.